In today’s edition of Money Saving Mondays we’re going to talk about how you can save money by bartering for services.
Bartering is an ancient but still popular method of trading for goods and services rather than paying for them with money.
For example, we have three young kids in our house and once a month or so my wife and I like to go out and enjoy an adults only dinner. It’s important to have some quality time alone with your spouse.
We do have a babysitter that we pay to use every once in awhile, but over the past few months we’ve put together a sort of babysitting bartering agreement with a few other families in the neighborhood. We get free babysitting from them in return for looking after their little rugrats when they want to have a night out alone.
Another example of bartering could be a dentist offering free cleanings or Invisalign treatment to a graphic designer in exchange for a new website logo, or a contractor making some repairs on a travel agent’s home in exchange for a deal on a weekend cruise. Heck, I once worked with a guy who traded an old motorcycle for some electrical work in his condo.
So if there is something you need done but cash is tight, try thinking of alternative ways you can pay other than cash or credit.
While bartering is usually a deal in which everyone wins, you need to be careful about potential tax implications. See the IRS website for details on bartering income.